Pironet NDH AG publishes provisional figures for 2011: Strategic reorientation and positive figures in the continued group segments will lead to an increase in sales and turnaround in the result in 2011

(PresseBox) ( Cologne, )
Fiscal year 2011 and the change process which Pironet NDH AG underwent in recent months have transformed the company more than in most years since it went public in 2000. A very major reorientation of the company, the consistent goal of sustainable enhancement of the profitability plus extensive structural reforms and changes on the Executive Board were combined with a focus being placed on profit-making group segments displaying strong growth. The success is already visible in the positive figures posted by all three continued operative group segments and significant added liquidity as at 31/12/2011.

Double-digit percental growth in sales

In the continued group segments the company was able to increase sales significantly by 17.2 % to EUR 52.9 million (previous year EUR 45.1 million).

Reduction of costs and complexity in company law

After the strategic reorientation, Pironet NDH AG also made progress in reducing costs, although the positive effects resulting from this will only be felt fully from fiscal year 2012. The withdrawal from the loss-making segments has not only reduced the cost basis, but also the complexity of the enterprise with respect to company law and administration. As a result it was possible to streamline processes in particular in the Group holding company which therefore will result in considerably reduced future costs.

Positive swing of over 8.5 million euros with respect to EBIT and EBT

The company's turnaround and the success of the change process are reflected in particular in the cumulated results. As at 31/12/2011 the continued operative group segments together had earned a positive EBIT of + EUR 1.3 million (previous year - EUR 7.2 million) and an EBT of + EUR 1.3 million (previous year - EUR 7.3 million). On balance this means a positive swing in the result of more than EUR 8.5 million compared with the previous year's figures. In 2011 the increase in sales combined with a disproportionately small increase in costs led to a positive result in all three operative group segments.

Shortfalls from discontinued segments will have a negative effect for the last time

Despite the positive development in the continued operative units, the shortfalls from the discontinued lines of business, which were posted for the last time in 2011, amounted to - EUR 3.3 million (previous year - EUR 6.2 million) and led to a negative group result.

Restructuring and reorientation have been almost completed

In view of the fact that the restructuring and reorientation of the company have been almost completed and that all costs which are to be assigned to these (including the costs for terminating contracts with former Board members and management staff) have been already posted in 2011, Pironet NDH is now in an extremely good position (which has been adjusted and limited on the costs side) to ensure prosperity and growth in fiscal year 2012.

Liquid assets increased to EUR 15.7 million

The good sales and results figures in the continued group segments also helped to increase liquid assets in 2011. While the liquid assets amounted to EUR 9.5 million half way through 2011, until the end of the fiscal year they had grown by more than 65% and on the last day of the fiscal year totalled EUR 15.7 million (previous year EUR 12.5 million). This corresponds to a current net liquidity of EUR 1.07 per share. Pironet NDH continues to operate without liabilities to banks.

Increasing the overall profitability will remain the main objective in 2012

In all considerations regarding the further development of the company, increasing and safeguarding the sales in the business segments, and above all enhancing the overall profitability at Group level will remain the main objectives. The continued high equity ratio of 77% (previous year 69%), which increased further this fiscal year, and the constant cash inflow from the business activities will provide the basis for room for manoeuvre in the future.

In view of the positive changes the Executive Board anticipates a positive operative result on group level (EBIT) of more than + EUR 2 million in fiscal year 2012. In the medium term the company is aiming towards an EBIT margin of a double-digit percent range.

The Group's complete annual financial report for 2011 will be published on 30/04/2012 at www.pironet-ndh.com/ir.

The Executive Board
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